Investors have shied away from Industrial stocks in 2023
Despite this, with an expected 2.5% growth in manufacturing gross domestic product for 2023 and similar expectations for 2024, the sector looks well set to hold up against the potential for a downturn in the economy next year.
Years of underinvestment could bolster the top stocks in 2024
With decades of neglect, recent issues with supply chains spurred by the pandemic showed the need to increase domestic investment to keep manufacturing in the United States.
Recession in 2024 could slow progress for the sector
While a slump in the economy next year could taper the short-term outlook, the desire of businesses and the government to not depend on global supply chains and to manufacture here is strong. With the need to build infrastructure projects, the top companies will be in demand.
We screened our 24/7 Wall St. industrial research database, looking for the companies that paid the most considerable ultra-yield dividends. We found 6 top stocks that are all Buy-rated access Wall Street and offer among the highest dividends. All could be bought in December as solid portfolio ideas for 2024.
3M
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This top company could jump with continued economic pick-up, and the shares are down big this year while paying investors a 6.25% dividend. 3M Company (NYSE: MMM) provides diversified technology services in the United States and internationally.
The company operates through four segments:
- Safety and Industrial
- Transportation and Electronics
- Health Care
- Consumer
The Safety and Industrial segment offers industrial abrasives and finishing for metalworking applications;
- Auto body repair solutions
- Closure systems for personal hygiene products
- Masking and packaging materials;
- Electrical products
- Materials for construction and maintenance
- Power distribution
- Electrical original equipment manufacturers
- Structural adhesives and tapes
- Respiratory, hearing, eye, and fall protection solutions
- Natural and color-coated mineral granules for shingles
The Transportation and Electronics segment provides ceramic solutions;
- Attachment tapes, films, sound
- Temperature management for vehicles
- Premium large-format graphic films for advertising and fleet signage
- Light management films and electronics assembly solutions
- Packaging and interconnection solutions
- Reflective signage for highway and vehicle safety
The Healthcare segment offers healthcare procedure coding and reimbursement software; skin, wound care, and infection prevention products and solutions; dentistry and orthodontic solutions; and filtration and purification systems.
The Consumer segment provides consumer bandages, braces, supports, and consumer respirators; cleaning products for the home; retail abrasives, paint accessories, car care DIY products, picture hanging, and consumer air quality solutions; and stationery products.
United Parcel Service
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With the holidays coming, the company is in the best time of year for earnings and offers a hefty 4.17% dividend. United Parcel Service, Inc. (NYSE: UPS) is a package delivery company that provides transportation and delivery, distribution, contract logistics, ocean freight, air freight, customs brokerage, and insurance services.
It operates through two segments:
- U.S. Domestic Package
- International Package
The U.S. Domestic Package segment offers time-definite delivery of letters, documents, small packages, and palletized freight through air and ground services in the United States.
The International Package segment provides guaranteed day and time-definite international shipping services comprising guaranteed time-definite express options in Europe, Asia, the Indian subcontinent, the Middle East, Africa, Canada, and Latin America.
The company also provides international air and ocean freight forwarding, post-sales, and mail and consulting services.
In addition, it offers
- Truckload brokerage services
- Supply chain solutions to the healthcare and life sciences industries
- Financial and information services
- Fulfillment and transportation management services
Stanley Black & Decker
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When the economy is struggling, the do-it-yourself legions repair instead of replace, and this tool giant is an excellent idea with a hefty 3.5% dividend. Stanley Black & Decker, Inc. (NYSE: SWK) engages in the tools and storage and industrial businesses in the United States, Canada, the rest of the Americas, France, the rest of Europe, and Asia.
The company’s Tools & Storage segment offers professional products, including
- Professional-grade corded and cordless electric power tools and equipment
- Pneumatic tools and fasteners
- Corded and cordless electric power tools primarily under the BLACK+DECKER brand
- Corded and cordless lawn and garden products and related accessories
- Home products; and hand tools
- Power tool accessories and storage products
Stanley Black & Deckers’ industrial segment provides
- Engineered fastening systems and products to customers in the automotive, manufacturing, electronics, construction, aerospace, and other industries
- Sells and rents custom pipe handling, joint welding, and coating equipment for use in the construction of large and small-diameter pipelines
- Pipeline inspection services
- Hydraulic tools and performance-driven heavy equipment attachment tools
Lockheed Martin
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This company remains one of the top aerospace and defense stocks to buy and pays a solid 2.80% dividend. Lockheed Martin Corporation (NYSE: LMT) researches, designs, develops, manufactures, integrates, operates, and sustains advanced technology systems, products, and services.
The company operates in five principal business segments:
- Aeronautics, missiles, and fire control
- Mission systems and training
- Space systems
- Information systems
- Global solutions
Being the Pentagon’s prime contractor, Lockheed Martin offers a diverse global aerospace, defense, security, and advanced technologies portfolio.
The company’s leveraged presence in the Army, Air Force, Navy, and IT programs guarantees a steady inflow of follow-on orders from the U.S. government and many foreign allies of the nation.
Raytheon Technologies
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This company has a diversified business mix and pays shareholders a solid 2.85% dividend. Raytheon Technologies Corporation Company (NYSE: RTX) is an aerospace and defense company that provides systems and services for commercial, military, and government customers worldwide.
It operates through four segments:
- Collins Aerospace
- Pratt & Whitney
- Raytheon Intelligence & Space
- Raytheon Missiles & Defense
The Collins Aerospace Systems segment offers:
- Aerospace and defense products
- Aftermarket service solutions for aircraft manufacturers and airlines
- Regional, business, and general aviation
- Defense and commercial space operations
- Cabin interior, oxygen systems, food and beverage preparation
- Storage and galley systems
- Lavatory and wastewater management systems
- Airborne intelligence
- Surveillance and reconnaissance systems
- Test and training range systems
- Crew escape systems and simulation
- Training solutions
- Information management services
- Aftermarket services that include spare parts, overhaul and repair
- Engineering and technical support, training and fleet management solutions, and asset management services
The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers and produces, sells, and services military and commercial auxiliary power units.
The Raytheon Intelligence & Space segment develops and provides integrated space, communication, sensor systems, and cyber and software solutions to intelligence, defense, federal, and commercial customers.
The Raytheon Missiles & Defense segment provides end-to-end solutions for U.S. and foreign government customers designed to detect, track, and engage threats.
Automatic Data Processing
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This conservative information technology company makes the list and pays a dependable 2.41% dividend. Automatic Data Processing, Inc. (NASDAQ: ADP) provides worldwide cloud-based human capital management solutions.
ADP operates in two segments:
- Employer Services
- Professional Employer Organization (PEO)
The Employer Services segment offers strategic, cloud-based platforms and human resources (HR) outsourcing solutions. Its offerings include payroll services, benefits administration, talent management, HR management, workforce management, insurance, retirement, compliance services, and integrated HCM solutions.
The PEO Services segment provides HR outsourcing solutions to businesses through a co-employment model. This segment offers employee benefits, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services.
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